Welcome to edition 201 of Insider Weekends. Insider buying declined last week with insiders purchasing $48.69 million of their stock compared to $99.75 million in the week prior. Selling increased with insiders selling $502.48 million of stock last week compared to $432.02 million in the week prior.
Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week went up to 10.32. In other words, insiders sold more than 10 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 4.33. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.
Insider Sell Buy Ratio April 25, 2014
Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.
Notable Insider Buys:
1. China Housing and Land Development, Inc. (CHLN): $2.35
Shares of this real estate company were acquired by 2 insiders:
- Director Pingji Lu acquired 1,039,006 shares, paying $2.29 per share for a total amount of $2.38 million. Mr. Lu increased his stake by 26.93% to 4,896,505 shares with this purchase.
- Chief Executive Officer Xiaohong Feng acquired 65,655 shares, paying $2.32 per share for a total amount of $152,320. Mr. Feng increased his stake by 7.63% to 926,511 shares with this purchase.